Cars | A car that is a few years old can be sold at full price

Car manufacturers delivery difficulties and Russia’s attack on Ukraine have caused extraordinary phenomena on the car market: some combustion engine cars retain their value better than usual, and a plug-in hybrid can even be obtained used for the same price as a new one.

The value of a new car normally drops by several percent as soon as you drive it out of the dealership.

“It’s exceptional to get the same price for an old car as you paid, but it’s not as exceptional in this situation as it normally is,” says the CEO of Autotuojat ja -teollisuus ry Tero Kallio.

Kallio says that under normal circumstances it was possible to get yours back for special or expensive small-series cars, but now even a used car can get the same price as a new one after a few years of use.

“Recently, it has become possible to get net only from used cars from time to time due to component shortages and long delivery times. I’ve heard individual examples since last spring and winter,” says Kallio.

Business director of the used car retail chain Saka Finland Petri Poukkula says that a car seller can in principle get the same price for a used car as a new one for individual car brands or models, if their supply is weak and demand is high.

“At the moment, the low availability of new cars can affect the fact that the price of a used car remains good. However, they are rare cases where a used hybrid would cost the same as a new one”.

Read more: The eternal truth of the car trade crumbled: buying a new car can now be a profitable investment.

Corona pandemic caused by the shortage of components in the automotive industry has extended the delivery times of some new cars by even more than a year.

Due to the long waiting time, some car buyers are ready to pay a new price for a used car in order to get the vehicle right away.

Russia’s attack on Ukraine, on the other hand, caused the price of gasoline to rise significantly, and the price of a liter was around 2.50 euros earlier this year. Car buyers have reacted to the increase in fuel prices, as the demand for used cars has shifted more strongly to electric and hybrid cars since the beginning of the Russian war of aggression.

Kallio of Autotuojat ja -teollisuus ry says that long delivery times and expensive fuel have created a situation where used electric and plug-in hybrid cars can retain their value if the vehicle has not been driven much during the storage period.

Due to the long delivery times of new vehicles, the value of gasoline cars is also now decreasing more slowly than normal.

“The value of new, desirable gasoline cars and light hybrids is maintained better than normal. The desirability of electric cars is increased by the fact that electricity is cheaper than gasoline or diesel,” says Kallio.

HS said on Monday that at current energy prices, an electric car is often cheaper than a gasoline car, even if you take into account the more expensive purchase price of an electric car.

Especially for those who drive a lot and are average drivers, a fully electric car is usually worth it. With very few drives, the gasoline car usually takes the win.

Although a gasoline car will generally be the most expensive for someone who drives a lot, in some cases a plug-in hybrid can be even more expensive because the purchase price of the car is so high.

Read more: Why would anyone buy anything other than an electric car? Use HS’s calculator to see what kind of car would be the most affordable for you

Used ones the car trade has developed slowly this year, as consumer confidence has weakened due to the acceleration of inflation.

According to the latest figures published by the Automotive Information Center, sales of used cars decreased by 16 percent in July compared to the same period last year. In July, the fewest used cars were sold during the measurement history that started in 2016.

Used car chain Kamux told last week in its interim report for the second quarter, that during the beginning of the year the reduced demand has been directed especially towards electric and hybrid cars and, in the case of combustion engine cars, towards low-consumption models.

According to the company, there is still a “scarce” flow of used cars to the market and the buying market for the most popular models is “tight”.

The demand for electric cars is also clearly visible in the sale of new cars. According to Statistics Finland, 862 fully electric cars were first registered in July. That is 15 percent more than a year earlier. At the same time, the first registrations of all cars fell by 26 percent from the previous year.

For example, only 527 diesel cars were registered. The number is the lowest since 2014.